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Flywire Officially Files for US IPO, Seeks to Raise $100M in Funding

UTC by Godfrey Benjamin · 3 min read
Flywire Officially Files for US IPO, Seeks to Raise $100M in Funding
Photo: Flywire / Facebook

Flywire has revealed a couple of underwriters including but not limited to Goldman Sachs and JPMorgan Chase & Co. 

Boston, Massachusetts-based payment firm Flywire Corporation has officially filed for an Initial Public Offering (IPO) in the United States of America. As reported by Morning Star, the company seeks to raise $100 million from investors, a benchmark figure that may be quite conservative for the firm.

Flywire IPO comes amidst growing interest in fintech and payments in general. The past year has facilitated a high level of growth in the payment industry. The COVID-19 pandemic pushed people to embrace alternative ways to conduct cash transactions when compared to what the traditional markets have to offer. Flywire has been one of the beneficiaries of this growth, with revenues surging by 38% in the quarter ended March 31st.

Per the filing, the company grew its revenue from $32.71 million in the year-ago quarter to $44.99 million for the three months ended March 31. While the revenue retains its uptick, the company posted a net loss of $8.65 million compared with a profit of $3.7 million. Flywire has the backing of major investors including Goldman Sachs Group Inc (NYSE: GS), Bain Capital, Spark Capital, and Temasek Holdings amongst others.

Per an earlier Reuters report about Flywire IPO plans earlier in the year, the company was valued at $3 billion, and the potential public debut is billed to topple this valuation.

Flywire IPO through the Lens of Coinbase Global Inc

Different companies have unique business models and revenue generation means. The pursuit of a public listing marks a time in the life of a firm, wherein a more ambitious and mainstream growth is on the card. While Flywire is next in line, predecessors such as Coinbase Global Inc (NASDAQ: COIN) had loud applause when it went public back in April.

Despite Coinbase and Flywire operating in the sector that seeks to reshape the money economy, Coinbase’s tilt toward cryptocurrencies makes it unique. The digital currency affiliated firm went public through a direct listing, implying that no Underwriters or third parties were involved and shareholders traded their holdings directly in the open market. Flywire has listed a couple of underwriters including but not limited to Goldman Sachs and JPMorgan Chase & Co.

At the opening valuation of $381 price per share on the first day of trading, up from a reference price of $250, Coinbase’s price is currently exchanging hands at $302.80 after a 1.73% surge in the Pre-market. The reducing share price is a function of the volatile nature of the cryptocurrency industry which Coinbase primarily depends on. Flywire is billed to see more stability in its price as it serves clients within the education, healthcare, and travel sectors.

Flywire, just like Coinbase will list on the Nasdaq Global Select Market and trade under the ticker symbol (FLYW).

Business News, IPO News, Market News, News
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